We are going through some very difficult times at the moment because the covid19 pandemic has thrown all of our plans out the window and we have had to put them on hold for the duration. The past 2 ½ years have been a complete nightmare for businesses and for investors like. Unless you invested in pharmaceutical companies, then you’ve probably seen your financial portfolio lose quite a lot of its value. The one thing however that hasn’t been hit by this pandemic is the property market and property remains as attractive now as it ever was.
This is why many people are taking advantage of properties to rent in Dubai because they see this as the perfect opportunity to purchase an asset that they know is going to grow in value. If you have some ideas about how you would like to invest your money and property is not included in it, then maybe the following reasons for doing so might help you to change direction.
- It provides cash flow – In the vast majority of cases when people take out mortgages for properties, they can rent them out and the money that is taken in for this pays for the mortgage and there is also money left over. This provides you with a very passive income that you can rely on month after month and year after year. If you can get your tenants to sign a long-term contract then you will certainly be on the horse’s back when it comes to extra income.
- Inflation protection – We are currently seeing rises in inflation all of the world and when inflation goes up the cost of products and services does as well. The good news is that the value of your property will rise as well and rents will go up as a direct consequence. You’re now protected from many inflationary differences because you will be receiving a higher income for your rental property and it is unlikely that the price of your property will come down afterwards.
As well as providing you with some disposable income, owning a property helps you to put a little something back into the community. You can provide a young family with a roof over their heads and you can make changes to the property as they need them. You’re not just investing in the property to keep your tenants happy because you are adding to its value as well.